Ripple’s partial victory against the US Securities and Exchange Commission (SEC) in court has led to a significant increase, up to 90%, in the price of XRP. The court’s ruling that XRP cannot be classified as a security has relieved many altcoins, such as Cardano (ADA), from the burden of being classified as securities. As a result, the price of ADA has also surged.
The Court’s Decision in Favor of XRP Benefits ADA
The court’s decision in favor of Ripple against the SEC has been declared a partial victory, causing the cryptocurrency market to move upwards. The market’s value has surpassed $1.25 trillion with a 5% increase in the past 24 hours. Altcoins, including those classified as securities by the SEC, have also experienced significant movements. One of these altcoins is ADA, the native asset of Cardano.
The rise in the price of ADA, the native asset of the Cardano ecosystem, is a result of the US court ruling that algorithmically generated and traded XRP is not a security. The news has also had a significant impact on ADA, which the SEC has accused Coinbase and Binance of violating securities laws with.
ADA, which has risen over 20% in the past 24 hours and reached $0.3747, is currently trading at $0.3508 with a slight retracement at the time of writing this article.
Could Cardano Be Classified as a Security, as Claimed by the SEC?
When the SEC filed lawsuits against Coinbase and Binance, it classified BNB, Solana (SOL), Decentraland (MANA), and Polygon (MATIC), among other leading altcoins, as securities and also filed a lawsuit against the Cardano Foundation.
Although the regulatory authority did not directly sue Cardano, the negative classification had a significant impact on the network’s native asset, leading to its delisting from several major trading platforms, including Bakkt, eToro, and Robinhood.
The classification of Cardano as a security may continue to exert pressure on the asset, as it has been under pressure since Ripple’s lawsuit by the SEC over the past two years, unless it changes in the near future.
